LITTLE ROCK, Ark. (AP) - Gov. Mike Beebe says tax cuts being considered by Arkansas lawmakers would need to take effect later than proposed in order for them to be funded by savings from a proposed expansion of health insurance coverage.

Beebe told reporters Wednesday that a problem with the capital gains and income tax cuts backed by a House panel is they'd take effect before the fiscal year that begins July 1, 2014. That's when Arkansas would see savings from the insurance proposal. Lawmakers are considering a proposal that would use federal funds to purchase private insurance for low-income residents newly eligible for Medicaid under the health care law.

Beebe also said he prefers a competing income tax cut proposal by Democratic Rep. Warwick Sabin to the one approved by the panel Tuesday.